Question
On March 1, A Co. began construction of a small building. The following expenditures were incurred for construction: March 1 $ 225,000 April 1 $
On March 1, A Co. began construction of a small building. The following expenditures were incurred for construction:
March 1 $ 225,000
April 1 $ 275,000
June 1 600,000
Dec 31 500,000
The building was completed and occupied on December 31. To help pay for construction $850,000 was borrowed on March 1 on a 10%, three-year note payable. The only other debt outstanding during the year was a $1,500,000, 8% note issued two years ago.
(a) Calculate the weighted-average accumulated expenditures.
(b) Calculate avoidable interest (capitalizable interest)
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Accounting What The World's Best Forensic Accountants And Auditors Know About Forensic Accounting And Auditing That You Dont
Authors: Greg Shields
1st Edition
1647483255, 978-1647483258
